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The Funding Circle ISA is coming soon

You can earn 7%* tax-free with the Innovative Finance ISA and support the UK economy.

Your actual return may be higher or lower as by lending to businesses, your capital is at risk.

Pictured: Lend to British businesses like The Stripes Company.

A new type of ISA for peer-to-peer lending:

Innovative Finance ISA

Individual Savings Accounts (ISAs) are tax-free accounts for savings and investments. You have a subscription of £20,000 every year which can be split between a cash ISA, a stocks and shares ISA and coming soon, an Innovative Finance ISA.

The Innovative Finance ISA will enable you to earn tax-free returns by lending to businesses through peer-to-peer lending platforms like Funding Circle.

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The Government-owned British Business Bank is lending £80m to businesses through Funding Circle, alongside thousands of people and other investors.

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In March 2013, the Government began lending £20 million to small UK businesses through Funding Circle, as part of its Business Finance Partnership scheme.

In early 2014, the Government-owned British Business Bank Investment Programme decided to commit a further £40 million alongside other investors, to support economic growth by providing more efficient finance to small businesses. In 2017 the British Business Bank committed a further £40 million to lend to small businesses.

Funding Circle is supported by British Business Bank Investments Ltd, the commercial arm of the British Business Bank, a development bank wholly owned by the UK Government. In 2017, British Business Bank Investments Ltd committed £40 million, in addition to its £40 million commitment in 2014, alongside other investors, to support economic growth by providing more efficient finance to smaller businesses.

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Benefits of the Funding Circle ISA

  • 7.1% — industry leading returns Current estimated return
  • Tax–free interest on £20,000, or more if you transfer in previous year ISAs
  • Proven track record 46,581 investors have lent £1.1 billion to businesses
  • Easy access Options to access your money early
  • Transfer ISAs Transfer from your current provider in 3 steps
  • Online ISA account Accessible on desktop and iOS app

Remember, your actual return may be higher or lower as your capital is at risk.

About Funding Circle

How does it work?

Lend to hundreds of creditworthy businesses and receive monthly repayments with tax-free interest.

Diversify by lending small amounts to lots of businesses to minimise risk. E.g. with £2,000 you can lend £20 to 100 businesses.

Access your money by selling your loan parts to other investors. Read more

Watch how peer-to-peer lending works Read more about us

Martin Lewis, writing about his Funding Circle Experience

“Funding Circle has been the most lucrative [peer-to-peer platform]. Since I joined in August 2012, drip feeding cash in, my returns, after all fees and bad debt adjustment, have been 6.2pc.”
The Telegraph February 2013


Be the first to know when the Funding Circle ISA opens and you can support businesses like Fashionizer, who secured new contracts with their Funding Circle loan.

ISA eligibility:

What you need to know

  • You have a yearly subscription of £20,000 which can be split across all 3 ISA types.
  • You must be 18+ years of age and a UK resident.
  • Please have your National Insurance number to hand when you complete your application.
  • You can only subscribe to one Innovative Finance ISA account per year, which can be opened through your chosen platform. Read how Funding Circle compares to other investments
  • The Funding Circle ISA is a flexi ISA. Under new ISA rules you can take your money out of your account and put it back later in the tax year, without losing your tax-free entitlement.

We’re here to help

Have any questions?

How can I transfer an ISA from my current provider?

Transferring an existing ISA is easy. Once you’ve created your ISA account simply print and complete our transfer form — available in the transfer money section in your account — post it back to us and we’ll take care of the rest. Transfers can take up to 30 days.

How can I access my money?

If you want to access your money before the end of a loan term, you can sell your loan parts to other investors. While usually very fast, selling loans is not instant and depends on demand from other investors looking to buy at that time. You can only sell active loans with no credit issues, and not in the last month of their term.

How do I minimise risk?

Only established and creditworthy businesses can borrow through Funding Circle and each loan application is reviewed by our experienced credit assessment team. However some businesses will not be able to fully repay their loan. We call this a bad debt. Diversification is the best way to manage risk. This simply means spreading your lending across hundreds of businesses, so you’re only lending a small amount to each one. Read more about the benefits of diversification and how you can diversify at Funding Circle.

Visit our help center for answers to the most popular questions
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New to Funding Circle?

Read our guide and register your interest today.

Register your interest

Already an investor?

Soon you’ll be able to open an ISA directly within your account.

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How do we estimate our return?

*The projected return is an estimate of what investors could earn on the Balanced lending option, after fees and bad debts, but before tax. It uses the loans we expect to be funded on the platform, and the estimated bad debt rate of those loans based on our all-time loan data. See the full calculation here. Read more about the benefits.